The year ahead will present an opportunity for investing in key emerging markets. Schroders co-head of Emerging Market Debt James Barrineau joins Markets Hub to discuss. Photo: Reuters.

This transcript has been automatically generated and may not be 100% accurate.

... I ... joining us now is James and James ... Addy from Kenya during two thousand twelve were wondering what is the outlook for emerging market debt in two thousand thirteen ... what James Barrow which orders thank you so much for joining us as we talked about ... emerging market debt had this banner two thousand twelve ... aam across the region from land and to ... Asia and across the board ... can we replicate that this year ... and probably not ... but the environment still pretty robust we always looking global liquidity is the big driver and obviously we've still got tons of global liquidity ... in fact we may be getting close to global liquidity if the BOJ it's time to ... raising imagine the scene for for three months Shinzo of advantage and thus enjoy Ave ... as it looks like he's going to pressure the Bank of Japan decreasing was measures on top of what he's going to do with his own administration ... where are the emerging market areas in Asia that would benefit we know about ... the place that China really impacts would is Japan really ... would would fall through well ... we don't think of it in terms of who might benefit those who might actually get hurt in the yen really contains ... a fairly steep decline in those countries ... that basically compete with Japan like Oreos ... maybe some other of the pack ... countries in Asia ... may feel compelled to stop the appreciation of their own currencies ... one of things we for our desk a lot in terms of look into twenty thirteen is what America weaker lot about Mexico with reliable Argentina where a lot of that being the place that could ... I'm ... that could outperform other markets YouTube leave that as well or is that to what you see in London on growth is still surprisingly robust and Latin America had given what's happening in the last of Mexico's in great shape ... they're getting marketshare from China's Chinese wages rise ... Brazil is a little bit more shaky but if agricultural prices come back they'll be fine ... so in general on the region is holding up in yields are higher in Latin America ... both the local currency and our dad so that should be where most he returned to generate ... a mention is this to murder this difference in local currency ... and and importers debt what's interesting is ... that she was such a big run in those foreign currency bonds ... and invasive across the board where's the where with the divergence BB in that set of emerging market debt to share while that's where people should focus we think the cause the dollar emerging and especially the investment grade sovereign debt ... he is unlikely to perform new is well was arrested the asset class so we always ... are advising investors to take a more diversified approach emerging markets which is when ... we do because that investment grade sovereigns and very much tied to U S Treasurys ... create a selloff in U S Treasuries there's a potential create negative returns there ... corporate bonds still look good local currency bonds still look good so you really have to ... be focused on specific sectors of the asset class based in or out of place that that that was prickly interesting as ... there was a lot of run into Egypt ... in years past ... has invented a honestly tear when you're ... up for them locally but this summer with easing efforts haven't ... been as hard as you might expect what are your thoughts on each of which is really ... the fulcrum between ... for meals and what a great investment from a political standpoint a terrible past ... it is a very shaky environment the need to get an IMF steel to backstop the foreign reserves which are falling dramatically ... the currency has been very shaky ... so it's not a place we would jump into right now we think eventually I'll get an IMF deal to kind of stabilize the situation ... but certainly that is probably one of the most uncertain emerging markets ... and then distort the Verity of course for Europe obviously ... the euro zone has had its back and forth over the last stop was seems like the entire alliance and yet it still hung in there still there and ... you wonder about some places like hungry ... you wonder about the opera for Europe that ... today the join the euro based out that they have their own debt to worry about ... how he looked at her for Europe as a place ... it seemed like a likable like last year given ... you get all the potential rebounds in Europe we don't have the overhang of the euro itself ... that's exactly right so investors really made tremendous gains in European peripheral euro ... by ... the weeks in Europe in local currency screened in ... so there's not a whole lot to go there but the currencies ... are very tied to the euro secure view is that the euro will appreciate you can do well in emerging Europe local currency ... what could change the key source for joining us thank you ... please make sure to read more of which it has a say on James is the co head of emerging market debt at Schroders ...